Atlanta Real Estate Market 2020

Atlanta Real Estate Market Trends & Statistics 2020

In this section, you will learn about the top factors that make Atlanta one of the strongest real estate markets of 2020, including: affordability, cash flow, and equity growth potential. Explore Atlanta’s housing market, population, and employment trends in the tabs to learn more.

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Data Sources:

• https://factfinder.census.gov/
• https://www.deptofnumbers.com/
• https://www.zillow.com/
• RealWealth Property Team Data

Atlanta real estate values are more affordable than many other U.S. cities today.

• In 2019, the median purchase price of 3 bedroom single family homes in the Atlanta area was just under $190,000. This is 15% lower than the national average of $222,000 for 3 bedroom homes nationwide.
• In the neighborhoods where RealWealth members invest, the median purchase price was only $158,000 in 2019. This is 29% more affordable than the national average.
• This shows us that real estate in Atlanta is more affordable than many cities across the nation. This is especially true in the neighborhoods where RealWealth members are investing today.

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In some Atlanta neighborhoods, it’s possible to generate stronger monthly income than the national average.

• In 2019, the median monthly rent 3 bedroom homes in Atlanta was $1,434, which is 0.76% of the purchase price of $190,000. This is slightly higher than the national purchase-to-rent ratio of 0.75%.
• In the neighborhoods where RealWealth members invest 3 bedroom homes rent for a median $1,500 per month, which is 0.95% of the purchase price of $158,000. This is 27% higher than the national average.
• This shows us that it’s possible to generate passive monthly cash flow from Atlanta properties, at a higher rent-to-purchase ratio than the national average.

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Atlanta home values have been appreciating at a faster rate than the national average.

• In 2012 the median price of 3 bedroom homes in Atlanta was $91,000. This means that, in the last 7 years (2012 to 2019), 3 bedroom homes in Atlanta have appreciated by 109%. This is 97% faster growth compared to the national average.
• This shows us that Atlanta property values are appreciating at much a higher rate than most other U.S. cities today.

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The median monthly rent for Atlanta homes has risen slightly slower than the national average.

 

• In the last 7 years the median rent for 3 bedroom homes increased by 34% in the Atlanta metro. Nationally, rents increased by 37% during this period.
• This shows us that Atlanta rental prices are appreciating slightly slower than other U.S. cities today, but it’s important to note that rents are rising consistently. This is a good sign of a stable real estate market.

Atlanta’s population has been growing rapidly over the last several years.

• Since 2010, Atlanta’s population increased by over 12%, which is 111% faster than the national average.
• This means that Atlanta is growing significantly faster than many other real estate markets, which is a promising sign for investors interested in equity growth and future income potential.

The Atlanta real estate market created more jobs in 2019 than most U.S. cities.

• In the past year, Atlanta added over 60,000 new jobs to their economy – an annual growth rate of just over 2%. This 46% higher than the U.S. annual job growth rate of 1.47%.
• Population growth and job growth are two positive indicators of a strong real estate market. The reason is that jobs attract people and people will always need a place to live. This creates an increased demand for housing, which is a very good sign for landlords.

Atlanta is Very Affordable

• In the neighborhoods where RealWealth members invest, the median purchase price was only $158,000 in 2019. This is 29% more affordable than the national average.
• This shows us that real estate in Atlanta is more affordable than many cities across the nation. This is especially true in the neighborhoods where RealWealth members are investing today.

Atlanta is Cash Flowing

• In the neighborhoods where RealWealth members invest 3 bedroom homes rent for a median $1,500 per month, which is 0.95% of the purchase price of $158,000. This is 27% higher than the national average.
• This shows us that it’s possible to generate passive monthly cash flow from Atlanta properties, at a higher rent-to-purchase ratio than the national average.

Atlanta is Appreciating

• In the last 7 years (2012 to 2019), 3 bedroom homes in Atlanta have appreciated by 109%. This is 97% faster growth compared to the national average.
• This shows us that Atlanta property values are appreciating at much a higher rate than most other U.S. cities today.

Atlanta is in Demand

• Since 2010, Atlanta’s population increased by over 12%, which is 111% faster than the national average.
• In the past year, Atlanta added over 60,000 new jobs to their economy – an annual growth rate of just over 2%. This 46% higher than the U.S. annual job growth rate of 1.47%.
• Population growth and job growth are two positive indicators of a strong real estate market. The reason is that jobs attract people and people will always need a place to live. This creates an increased demand for housing, which is a very good sign for landlords.

Atlanta is Being Revitalized

• With more than $5 billion in private investments since the year 2000 and a proactive planning and community building team, Midtown, Atlanta stands out as one of the nation’s great neighborhoods.
• With a huge amount of new development underway that will accommodate more than 8,000 new jobs (see “Bonus” section below), we can expect Atlanta’s population to continue to grow in the coming years. And this is good news for real estate investors.

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[Bonus] 2018 Midtown Development

Last year, Midtown Atlanta received national recognition as a “Great Place to Live,” due to continued development and revitalization in the neighborhood. As we settle into 2019, it’s pretty likely that this growth isn’t slowing down anytime soon. Here are some notable projects in the works: Coda [Under Construction]: A massive development at Technology Square is underway. The 22-story tower and complex will feature 620,000 square feet of offices, a 100,000-square-foot computing center, and 46,500 square feet of retail space. The groundbreaking was held in December 2016 with hopes the building will be done in early 2019. Colony Square [Under Construction]:  One of Midtown Atlanta’s original high-rise developments is getting a major update to include an Apple Store, upscale shopping, high-end restaurants, and eventually a second tower. NCR Corporate Headquarters Tower II [Under Construction]: The Fortune 500 company’s first tower is already complete and now work is finishing on tower II. When construction finishes both towers will offer more than 750,000 square feet of office space for the Tech Square area. Whole Foods [Under Construction]: This Whole Foods will not be your typical grocery store. The three-story supermarket will include the groceries, along with a brewpub, restaurants, and a cooking school.

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Planning on visiting Atlanta before you invest? You should know it’s illegal to carry an ice cream cone in your back pocket on Sundays. But it’s totally cool to do it Monday through Saturday. Oh, and it’s also illegal to tie a giraffe to a lamp post.